Kadant Inc · NYSE:KAI
Kadant — Merger or Acquisition (January 2024)
12 slides from Kadant's merger presentation, Jan 29, 2024
Slide 1: Acquisition of KWS Manufacturing Company, Ltd.
JANUARY 29, 2024 Acquisition of KWS Manufacturing Company, Ltd. Exhibit 99
Slide 2: Forward-Looking Statements
Forward-Looking Statements The following constitutes a “Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995: This presentation and the accompanying remarks contain forward- looking statements that involve a number of risks and uncertainties, including forward- looking s
Slide 3: Acquisition of KWS Manufacturing Company, Ltd.
Acquisition of KWS Manufacturing Company, Ltd. KADANT ACQUISITION UPDATE – JANUARY 2024 | © 2024 KADANT INC. 3
Slide 4: Acquisition Overview
Acquisition Overview • Manufacturer of material handling equipment, including screw conveyors, screw feeders, slide gates, and bucket elevators • Founded in 1972 • Based in Burleson, Texas, with 165 employees • Market leading position in the screw conveyor market • Revenue for the trailing twelve mo
Slide 5: Primary Product Offerings
Primary Product Offerings • Screw conveyors used to transport and blend bulk material in processing plants • Screw feeders used in a broad range of bulk material metering applications • Slide gates used to control the flow into and out of a screw conveyor • Custom solutions designed to solve complex
Slide 6: Industries Served
Industries Served KADANT ACQUISITION UPDATE – JANUARY 2024 | © 2024 KADANT INC. 6 Agriculture Alternative Fuels Chemicals Lumber & Wood Pulp & Paper Recycling Food Products Refuse Systems
Slide 7: Acquisition Rationale
Acquisition Rationale • Market leading position in the screw conveyor market • 60% parts & consumables revenue • Complementary product offering to Kadant’s Material Handling segment; historical collaboration with Kadant Black Clawson • Strong leadership with long tenure in industry • Solid financial
Slide 8: Kadant and KWS Together
• Opportunity for our other businesses to leverage KWS relationship with key distribution partners • Broadened product portfolio to provide additional solutions to our customers • Potential for KWS to leverage Kadant’s global sales network • Strengthens our position in material handling markets 8 Ka
Slide 9: Integration
Integration • Manufacturing operations will continue in the current location as part of our decentralized operating structure • Continue to build on the strength of the KWS brand • Opportunities for collaboration and sharing best practices • KWS will be included in our Material Handling reporting se
Slide 10: Financial Metrics
Financial Metrics • $84 million purchase price* • Revenue for the trailing twelve months ended September 30, 2023 was $45 million • Favorable tax attributes • Borrowed $82 million • Borrowing rate estimated at 6.4% to 6.7% KADANT ACQUISITION UPDATE – JANUARY 2024 | © 2024 KADANT INC. 10 * Subject to
Slide 11: Questions & Answers
Questions & Answers To participate in the live Q&A session, please go to investor.kadant.com and click on the Q&A session link to receive a dial-in number and unique PIN. Please mute the audio on your computer. KADANT ACQUISITION UPDATE – JANUARY 2024 | © 2024 KADANT INC. 11
Slide 12: Investor Relations Contact
INVESTOR RELATIONS CONTACT Michael McKenney, 978-776-2000 IR@kadant.com MEDIA RELATIONS CONTACT Wes Martz, 269-278-1715 media@kadant.com January 29, 2024